The US Securities and Exchange Commission (SEC) has halted a global $62 million cryptocurrency trading and mining scheme, and the Department of Justice (DOJ) has indicted its CEO and founder. If convicted on all charges, he faces a total sentence of up to 45 years in prison, Department of Justice.
Securities and Exchange Commission halts $62 million global crypto fraud scheme
The US Securities and Exchange Commission (SEC) announced Friday that it has halted a fraudulent digital mining and trading scheme.
The Securities and Exchange Commission has indicted MCC International (also known as Mining Capital Coin), its founders (Luiz Carlos Capuci Jr. and Emerson Souza Pires) and two entities they control. The agency noted that the fees are “related to unregistered offers and fraudulent sales of investment plans called mining packages to thousands of investors.”
The Securities and Exchange Commission has stated that since at least January 2018:
MCC, Capuci, and Pires sold mining packages to 65,535 investors worldwide and promised 1 percent daily returns, paid weekly, for up to 52 weeks.
The complaint also alleges that MCC investors were initially promised to return Bitcoin (BTC). However, the defendants later “requested investors to withdraw their investment in a token called Capital Currency (CPTL), which was the MCC private token.”
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The US Department of Justice (DOJ) also independently announced on Friday that Capuci, founder and CEO of MCC, an alleged cryptocurrency investment and investment platform, has been indicted in a $62 million global fraud scheme.
The Department of Justice, Capuchi of Port St. Lucie, Florida, has labeled investors for its platform’s crypto investment and mining program, enticing them to invest in MCC’s “mining packages.” He and his co-conspirators claimed that MCC had an international network of crypto-mining machines that could bring “great profits and guaranteed returns” to investors.
They also promoted MCC’s cryptocurrency as an independent, decentralized organization “stabilized by revenue from the world’s largest cryptocurrency mining operation,” the DOJ added, noting:
However, Capuci ran a fraudulent investment scheme and did not use investor funds to mine new cryptocurrency, as he promised, but instead transferred the funds to crypto wallets under his control.
The indictment further alleges that Capuci fraudulently promoted and marketed alleged “trading bots” from MCC as an additional investment mechanism to help investors profit in the cryptocurrency market.
The Justice Department said the founder of MCC has also recruited affiliate promoters and partners to promote MCC in a pyramid scheme, adding that he has also hidden a website and monitored fraudulent proceeds from money laundering through several foreign cryptocurrency exchanges. The Ministry of Justice added:
Capucci is charged with conspiracy to commit Internet fraud, conspiracy to commit securities fraud, and conspiracy to commit international money laundering. If convicted on all charges, he faces a total sentence of up to 45 years in prison.
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